While new technologies, especially communication technologies, have reduced some obstacles in outsourcing work, there are still some risks in using an external organization to produce work for a project. IS/IT project managers must carefully examine the risks of outsourcing. In this Discussion, you will analyze and illustrate risks of outsourcing work.

To complete this Discussion:

Consider that your organization or an organization you are familiar with intends to outsource an IS/IT project to a SaaS provider. You are asked to analyze the potential risks in this technique:

  1. Identify major risks that you foresee and illustrate them in an Ishikawa diagram (see the Lecture notes for Weeks 5-6).

  2. Clearly identifying the major and minor causal factors.

  3. Identify and explain the risk management practices you could use to mitigate them and evaluate the applicability of these techniques.

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